Sprint Nextel Pays $45 Million Back Taxes

CLAYTON, Mo. – Sprint Nextel is the latest cell phone giant to reach a settlement with Missouri municipalities and pay millions of dollars in back taxes. Circuit Judge Bernhardt C. Drumm Jr. gave the $52 million agreement preliminary approval.

Sprint will pay $44.9 million in back taxes and $7.3 million for attorney’s fees. Earlier this month, AT&T agreed to pay $76.3 million to more than 300 Missouri municipalities. Verizon agreed in September to pay $29.5 million for back taxes and legal fees. The cellular companies had argued unsuccessfully that cell phones are two-way radios and not subject to land-line phone taxation.